BASIL is aware of the following notice from Chapter 13 Trustee - Russell Simon regarding Pre-trials, Tax Refunds, 341 Meetings and various Motion matters:
Members of the Debtor(s)’ Bar –
We are now 2 years into the pandemic and I would like to congratulate everyone for a job well done as we have adapted to these trying times. As we all know, case filings remain at decreased levels, although the monthly numbers are remaining fairly static.
In an effort keep each of you updated, as well as to streamline several of the more common motions that are being filed, I offer the following updates and suggestions that may assist you.
Remote 341 Meetings:
It appears that remote 341 Meetings are here to stay; however, they will soon transition to being conducted via Zoom. While I do not have specific time table as to when this conversion will take place, it is my understanding that if someone is unable to participate on the Zoom platform, an in-person meeting will be required (subject to any then current pandemic protocols).
Motions to Terminate Garnishment:
If your client’s Plan base has been paid in full and you wish to proactively terminate any Wage Order in effect, you can now send us an email requesting pre-approval. Upon receipt, we will verify that the plan base has been paid in full and, if so, approve your request. This will permit you to file either (i) an Agreed Motion or (ii) set forth in your Motion that the Trustee has no opposition to the relief sought.
Motions to Retain Tax Returns:
For those Plans currently proposing to pay 100%:
You may request pre-approval from our office to retain any tax refund, provided your Motion and Order state if the Plan ever amends to less than 100%, you agree to provide that any resulting pool to be no less than the retained tax refund (less Trustee’s fees) plus any previously required/agreed pool amount. Upon such a request, we will confirm that the Plan is 100% and the Debtor(s) is/are substantially current and, if so, approve your request. This will allow you to file either (i) an Agreed Motion or (ii) set forth in your Motion that the Trustee has no opposition to the relief sought.
Plan will be amended to pay the refund over the course of the case:
Upon such a request, we will confirm that the Debtor(s) is/are substantially current and, if so, approve your request. This will allow you to file either (i) an Agreed Motion or (ii) set forth in your Motion that the Trustee has no opposition to the relief sought.
Motions to Approve Settlements:
Once an agreement has been reached with our office regarding the estate’s portion of any financial recovery, you may you to file either (i) an Agreed Motion or (ii) set forth in your Motion that the Trustee has no opposition to the relief sought, provided the Motion and the Order both set forth that upon payment of such funds, the Trustee shall be entitled to increase the Plan base by the amount of such funds; increase the pool by a like amount (less Trustee’s fees) and be authorized to disburse such funds in accordance with the Order of Distribution.
All request for pre-approval should be sent to either Mary or I. Additionally, if you would like, you can send us a sample Motion/Order to review so that you will then have a template to utilize going forward. It is our goal to respond that same day so that you may get your Motion on file.
If any of you have any questions or comments, or can think of additions situations wherein we can expedite other matters, please feel free to reach out to me.
Thanks!
RS
Russell C. Simon
Chapter 13 Standing Trustee
Southern District of Illinois